Hariyana Ventures Ltd Management Discussions

Your Directors have pleasure in presenting the Management Discussion and Analysis report for the year ended on 31st March 2025.

INTRODUCTION:

Steel production and consumption are frequently seen as measures of a countrys economic development because it is both a raw material and an intermediary product. The Indian steel industry is classified into three categories - major producers, main producers, and secondary producers. India is the worlds second-largest producer of crude steel, with an output of 137.96 MT of crude steel and finished steel production of 132.57 MT in FY25.

Indias domestic steel demand is estimated to grow by 9-10% in FY25 as per ICRA.

The growth in the Indian steel sector has been driven by the domestic availability of raw materials such as iron ore and cost-effective labour. Consequently, the steel sector has been a major contributor to Indias manufacturing output.

The Indian steel industry is modern, with state-of-the-art steel mills. It has always strived for continuous modernisation of older plants and up-gradation to higher energy efficiency levels.

Market Size

In the past 10 12 years, Indias steel sector has expanded significantly. Production has increased by 75% since 2008, while domestic steel demand has increased by almost 80%. The capacity for producing steel has grown concurrently, and the rise has been largely organic.

In FY25 (April to February), the production of crude steel stood at 137.96 MT.

In FY25 (April to February), the production of finished steel stood at 132.57 MT.

In FY25 (April February) exports of finished steel stood at 3.60 metric tonnes (MT), while imports stood at 6.07 MT.

In FY25 (April-February), the consumption of finished steel stood at 137.85 MT.

The per-capita consumption of steel stood at 97.7 kgs in FY24.

In FY24, the consumption of finished steel stood at 136 MT.

In FY24, the production of crude steel and finished steel stood at 143.6 MT and 138.5 MT, respectively In FY24, the consumption of finished steel stood at 135.90 MT. In FY24, the exports and imports of finished steel stood at 7.49 MT and 8.32 MT, respectively.

The annual production of steel is anticipated to exceed 300 million tonnes by 2030-31. By 2030-31, crude steel production is projected to reach 255 million tonnes at 85% capacity utilisation achieving 230 million tonnes of finished steel production, assuming a 10% yield loss or a 90% conversion ratio for the conversion of raw steel to finished steel. With net exports of 24 million tonnes, consumption is expected to reach 206 million tonnes by the years 2030 1931. As a result, it is anticipated that per-person steel consumption will grow to 160 kg.

Government Initiatives

Some of the other recent Government initiatives in this sector are as follows:

Indian government plans to reduce imports by 50% in FY26 to become net exporter of steel in the near future. The Directorate General of Trade Remedies (DGTR) has recommended a 12% provisional safeguard to protect domestic players from surge in imports and potentially increasing their profitability. This development could potentially lead to a decrease in imports and increase market competitiveness.

Up to December 2024, RINL dispatched about 1,400 MT of steel to Northeast projects, including National Highways Authority of India (NHAI) and National Highways and Infrastructure Development Corporation Limited (NHIDCL). Plans are in progress to set up a two-tier steel distribution network in Guwahati.

Union Minister Mr. H. D. Kumaraswamy launched Steel Import Monitoring System 2.0 (SIMS 2.0) on July 25, 2024. SIMS 2.0 improves data transparency, quality control, and integration with government portals to support steel sector growth and better import management.

The Union Ministry of Steel launched PLI Scheme 1.1 on January 6, 2025, with a Rs. 6,322 crore (US$ 733.40 million) outlay to boost specialty steel production and attract investments. Covering five key product categories, the scheme eases norms to reduce imports, enhance domestic manufacturing, and improve energy efficiency, with applications open until January 2025.

Road Ahead

The steel industry has emerged as a major focus area given the dependence of a diverse range of sectors on its output as India works to become a manufacturing powerhouse through policy initiatives like Make in India. With the industry accounting for about 2% of the nations GDP, India ranks as the worlds second-largest producer of steel and is poised to overtake China as the worlds second-largest consumer of steel. Both the industry and the nations export manufacturing capacity have the potential to help India regain its favourable steel trade balance.

The National Steel Policy, 2017 envisage 300 million tonnes of production capacity by 2030-31. The per capita consumption of steel has increased from 57.6 kgs to 74.1 kgs during the last five years. The government has a fixed objective of increasing rural consumption of steel from the current 19.6 kg/per capita to 38 kg/per capita by 2030-31.

FINANCIAL HIGHLIGHTS:

Paid up Share Capital of the Company as on 31 March 2025, stands at 58,05,000 divided into 5,80,500 number of equity Shares of Rs. 10/- each fully paid up.

Income from operation stood at Rs. 50,56,820/- for fiscal 2025. ? Profit/Loss before Taxes of fiscal 2025 was Rs. 32,47,528/-. ? Basic Earnings per Share for fiscal 2025 was Rs (5.67). ? Net Worth of the company stood at Rs. 1,66,72,752/- as on March 2025.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

The Directors personally oversee the internal control system, ensuring that day-to-day operations align with management instructions, guidelines, and policies. Regular review of Internal Audit reports by management reinforces this commitment. Our company boasts a robust and adequate internal control system, tailored to our business size, which enhances operational efficiency, protects assets, optimizes resource utilization, and ensures statutory compliance. We continually strive for improvements in our internal control system, demonstrating our dedication to excellence and adherence to best practices..

HUMAN RESOURCES VIS-?-VIS INDUSTRIAL RELATIONS:

The Companys Human Resources philosophy is to establish and build a strong performance and competency driven culture with greater sense of accountability and responsibility. Effective industrial relations are also critical. This involves ensuring compliance with labour laws and regulations, such as minimum wage, working hours, and safety standards. Open and transparent communication channels with employees and their representatives are also necessary. Finally, providing benefits and programs that support employees well-being, such as health insurance, retirement plans, and work-life balance initiatives, demonstrates a commitment to employee welfare. With the changing and turbulent business scenario, the Companys basic focus is to upgrade the skill and knowledge level of the existing human assets to the required level by providing appropriate leadership at all levels motivating them to face the hard facts of business, inculcating the attitude for speed of action and taking responsibilities. A fair and transparent performance management system is vital to evaluate and reward employees. Employee engagement is also important, fostering a positive work culture and encouraging participation and feedback. Additionally, promoting diversity and inclusion in the workplace ensures equal opportunities for all. In order to keep the employees skill, knowledge and business facilities updated, ongoing in house and external training is provided to the employees at all levels. The effort to rationalize and streamline the workforce is a continuous process.

CAUTIONARY STATEMENT:

Certain statements in this Management Discussion and Analysis report may be considered forward-looking statements within the meaning of applicable securities laws. These statements are based on current expectations, estimates, and projections about the steel industry, the companys business, and the economic environment in which it operates. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the statements. Factors that could cause such differences include changes in global economic conditions, demand for steel products, competition, regulatory requirements, and other risks and uncertainties. The company does not undertake to update any forward-looking statements, whether as a result of new information, future events, or otherwise .